I joined DAP MPs Tony Pua and Nie Ching at the Works Ministry on Friday to take a look at the highway toll concessions that were recently declassified.
The civil servants were civil and polite but had to enforce archaic conditions. Besides the fact that each person can take only one agreement at a time for two hours, we are not allowed to use notebook computers while viewing the agreements! So there we were, about 14 people in all, taking notes the old-fashioned pen-and-paper way. This in a premises with Wi-Fi!
I appreciate the BN government making the agreements public – at least we can now discuss these without the Official Secrets Act (OSA) hanging over our heads. But I would point out salient points have never really been top-secret in the first place – pertinent details are available in Rating Agency Malaysia reports, and have also been given to bankers and analysts as the toll concessionaires raised borrowings or listed themselves on Bursa Malaysia.
Also, the very restricted viewing arrangements are hardly conducive for proper analysis. It would be far more useful if we could make copies of the concessions for thorough analysis instead of having to go to the Ministry every time we need to confirm something. In this internet age, surely the documents can be made available on-line. Or at least, provisions should be made for the public to buy hard copies.
The current arrangements also mean that, practically speaking, the documents are public only to Klang Valley residents. Someone staying in, say, Ipoh can hardly be expected to travel all the way down to KL just for a 2 hour viewing; and even then, he may not get to view the concession he's interested in if someone else has already taken it! There is only one copy of each agreement.
For the benefit of the 15m Malaysians who don't live in the Klang Valley, how about truly making the documents public, Mr Works Minister? Post them on the internet.
On Wed – some of my thoughts on the concession agreements.
Sunday, January 11, 2009
Wednesday, January 7, 2009
Private hospitals = licence to over-charge
I was appalled when the BN government tried to privatise Institut Jantung Negara. I am all for government getting out of business. But medical care should not be a business.
We deserve competent, reliable medical care at reasonable prices. But that has become increasingly hard to find as the BN government disregards its healthcare responsibilities. The result – highly lucrative private hospitals, profit-driven doctors and astronomical medical bills.
This is my unfortunate recent experience at a private hospital in Kuala Lumpur. The bill was covered by medical insurance, but it still left a very sour taste in my mouth as I felt completely exploited and taken advantage of by the hospital.
Yes, it is a private hospital, and private entities are entitled to make fair profits. But this hospital was gouging the patients. It certainly wasn't making an honest profit because it 1) Forced patients to accept unnecessary services and 2) Over-charged for medical supplies. Besides which it was clearly not operating efficiently.
Operating efficiently can be a matter of perception, so let's stick with the facts, stating with the unnecessary services forced on patients:
a)After registration, a porter escorted us to the relevant hospital department. We were shocked when told this was compulsory. Why? Surely the hospital sign-posting is clear enough for two able-bodied adults to find their own way. Why pay someone just to do this? The savings can go towards cheaper medical bills;
b)On arriving at the ward, the nurse was very insistent on us ordering a “Complimentary meal”. Who are we kidding? The cost of the meals is surely built into the hospital charges. Meals can be made optional. Some patients coming out of anaesthesia simply cannot consume any food, some prefer home-cooked food and some wish to just go straight home-sweet-home. Waiting for a hospital meal just means more unnecessary time in the ward, which means more costs;
c)Which brings me to an interesting point. The hospital in its “Conditions of Service for Inpatients” says it will take “approximately an hour to process the bill”. Also, it says, “half day room charges are applicable … if patients are discharged after 12:00pm”. My question: if the doctor gives the patient clearance to go by 11.15am but the hospital only produces the bill at 12.15pm, is the patient liable to pay the extra half day charge? And is this why the nurses are so keen to have the patients eat the “complimentary meal?”
d)Then, there was a “complimentary” toiletry kit at the bedside comprising a plastic water jug, small towel, shampoo, soap, powder, comb, toothbrush, toothpaste and toiletry bag. That “complimentary” word again. How about just having the convenience store downstairs stock toiletries at reasonable prices?
e)And finally, two bottles of “complimentary” water. Again, unnecessary cost, not to mention the environmental impact. Surely the hospital can instal water coolers;
The gouging does not end there, Besides the unnecessary items, the hospital over-charges for medical supplies. Just two examples: a) RM10 for a pair of surgical gloves. A quick search on the internet shows US$90 for 200 pairs, or about RM1.70 per pair. The hospital was charging 6x as much!; b) RM3 for cotton buds. The doctor used the grand total of 3 sticks. I think I can buy an entire pack for RM3;
The over-charging was clear only because I asked for the detailed bill, which, by the way, took 10-15 minutes to produce. The hospital usually just gives a summary bill, which presumably most patients just sign because it's covered by insurance. Isn't it normal, good business procedure to show the detailed bill when requesting payment?
Even with the detailed bill, three items were not adequately explained (i) gaseous supply; (ii) medication; (iii) nursing procedure. We did not use any gas, nor take any medication and there was no observation by the nurses.
Private hospitals are taking advantage of a captive, disadvantaged market. People who are ill just want to get better. They don't have the time or energy to shop around or argue. This is when new laws are appropriate – to protect the weak and level the playing field. The BN government, instead of chasing poor families to belt-up, should come up with a law to force private hospitals to clean up their acts.
Until it does, you and I end up paying for the higher costs and the unjustified profits. You don't notice the cost at first, because it's covered by your medical insurance. But the insurance company needs to make money too. Ever notice how your medical insurance premiums keep going up? It's in our interest to keep private hospital charges fair.
Some insurance companies have been pushing the hospitals to be fairer. Help them to help you. If you have a similar experience and agree with me, write to your insurance company so they have the facts to help them negotiate.
We deserve competent, reliable medical care at reasonable prices. But that has become increasingly hard to find as the BN government disregards its healthcare responsibilities. The result – highly lucrative private hospitals, profit-driven doctors and astronomical medical bills.
This is my unfortunate recent experience at a private hospital in Kuala Lumpur. The bill was covered by medical insurance, but it still left a very sour taste in my mouth as I felt completely exploited and taken advantage of by the hospital.
Yes, it is a private hospital, and private entities are entitled to make fair profits. But this hospital was gouging the patients. It certainly wasn't making an honest profit because it 1) Forced patients to accept unnecessary services and 2) Over-charged for medical supplies. Besides which it was clearly not operating efficiently.
Operating efficiently can be a matter of perception, so let's stick with the facts, stating with the unnecessary services forced on patients:
a)After registration, a porter escorted us to the relevant hospital department. We were shocked when told this was compulsory. Why? Surely the hospital sign-posting is clear enough for two able-bodied adults to find their own way. Why pay someone just to do this? The savings can go towards cheaper medical bills;
b)On arriving at the ward, the nurse was very insistent on us ordering a “Complimentary meal”. Who are we kidding? The cost of the meals is surely built into the hospital charges. Meals can be made optional. Some patients coming out of anaesthesia simply cannot consume any food, some prefer home-cooked food and some wish to just go straight home-sweet-home. Waiting for a hospital meal just means more unnecessary time in the ward, which means more costs;
c)Which brings me to an interesting point. The hospital in its “Conditions of Service for Inpatients” says it will take “approximately an hour to process the bill”. Also, it says, “half day room charges are applicable … if patients are discharged after 12:00pm”. My question: if the doctor gives the patient clearance to go by 11.15am but the hospital only produces the bill at 12.15pm, is the patient liable to pay the extra half day charge? And is this why the nurses are so keen to have the patients eat the “complimentary meal?”
d)Then, there was a “complimentary” toiletry kit at the bedside comprising a plastic water jug, small towel, shampoo, soap, powder, comb, toothbrush, toothpaste and toiletry bag. That “complimentary” word again. How about just having the convenience store downstairs stock toiletries at reasonable prices?
e)And finally, two bottles of “complimentary” water. Again, unnecessary cost, not to mention the environmental impact. Surely the hospital can instal water coolers;
The gouging does not end there, Besides the unnecessary items, the hospital over-charges for medical supplies. Just two examples: a) RM10 for a pair of surgical gloves. A quick search on the internet shows US$90 for 200 pairs, or about RM1.70 per pair. The hospital was charging 6x as much!; b) RM3 for cotton buds. The doctor used the grand total of 3 sticks. I think I can buy an entire pack for RM3;
The over-charging was clear only because I asked for the detailed bill, which, by the way, took 10-15 minutes to produce. The hospital usually just gives a summary bill, which presumably most patients just sign because it's covered by insurance. Isn't it normal, good business procedure to show the detailed bill when requesting payment?
Even with the detailed bill, three items were not adequately explained (i) gaseous supply; (ii) medication; (iii) nursing procedure. We did not use any gas, nor take any medication and there was no observation by the nurses.
Private hospitals are taking advantage of a captive, disadvantaged market. People who are ill just want to get better. They don't have the time or energy to shop around or argue. This is when new laws are appropriate – to protect the weak and level the playing field. The BN government, instead of chasing poor families to belt-up, should come up with a law to force private hospitals to clean up their acts.
Until it does, you and I end up paying for the higher costs and the unjustified profits. You don't notice the cost at first, because it's covered by your medical insurance. But the insurance company needs to make money too. Ever notice how your medical insurance premiums keep going up? It's in our interest to keep private hospital charges fair.
Some insurance companies have been pushing the hospitals to be fairer. Help them to help you. If you have a similar experience and agree with me, write to your insurance company so they have the facts to help them negotiate.
Saturday, January 3, 2009
US home prices plunged a record 19% yoy in October
Home prices in the 20 largest US cities plunged a record 19% in October 08 compared to a year ago. Compared to the previous month, Sept 08, they were down 2.2%. This is based on the Case-Shiller home price index released by Standard & Poor's of New York. David Blitzer, chairman of S&P's index committee noted that home prices are back to March 2004 levels.
Watch out for more troubles at US banks, including Citi. The US government's Nov 08 bailout package for Citi includes backing for US$306bn of property-related troubled loans and securities. But remember the fine print – Citi is responsible for the first US$29bn of losses. That can be quite easily incurred with just a 10% haircut on the US$306bn total; while residential property prices are already down nearly 20%. I'll bet Citi will be looking for more capital injections again this year.
There will be plenty more holes for Citi to fill. The US$306bn is only a small portion of Citi's total assets. Citi has another US$1.7 trillion of “assets” on its balance sheet, “assets” which include credit card, auto, small-business and personal loans. On top of that, there is about another US$1 trillion of “assets” not on the balance sheet (yet!) but in various special-purpose vehicles.
Watch out for more troubles at US banks, including Citi. The US government's Nov 08 bailout package for Citi includes backing for US$306bn of property-related troubled loans and securities. But remember the fine print – Citi is responsible for the first US$29bn of losses. That can be quite easily incurred with just a 10% haircut on the US$306bn total; while residential property prices are already down nearly 20%. I'll bet Citi will be looking for more capital injections again this year.
There will be plenty more holes for Citi to fill. The US$306bn is only a small portion of Citi's total assets. Citi has another US$1.7 trillion of “assets” on its balance sheet, “assets” which include credit card, auto, small-business and personal loans. On top of that, there is about another US$1 trillion of “assets” not on the balance sheet (yet!) but in various special-purpose vehicles.
Wednesday, December 31, 2008
This new year: Let's resolve to help ourselves
I hope you've had a nice end to 2008. Relaxing, unwinding, taking it easy with family and friends … remembering there's more to life than just material wealth …
The treadmill starts again tomorrow. A new year with new budgets and new targets to meet amidst an intimidating backdrop of global and local economic headwinds. The newspaper headlines are still depressing, and it does look like it will be a tough year ahead.
With tough times, there will be increasing calls for the government to do more. And yes, I agree the government must help the most disadvantaged and poorest of society. But I am sure there'll also be appeals for help from able-bodied, capable, intelligent Malaysians, such is the subsidy mentality that permeates our society today.
Let's break out of this subsidy trap. Subsidies don't make us richer. They just make us weak and dependent. Our manufacturers claim they need cheap power and labour to be competitive. The reverse is true – it is cheap power and labour that have made us uncompetitive.
Power is so cheap in Malaysia that companies and individuals barely make any effort to consume it wisely. The best evidence – how many of us wear jackets/sweaters in the office because the air-cond is too cold? And take a look at the lights – both in your home and at the office. I'll bet there are more old-fashioned energy-hungry menthol bulbs and even worse, halogen lamps instead of energy-saving bulbs.
And consider petrol. While our businesses lobbied for lower prices, corporations such as courier company UPS in the US actively used their creativity and skills to reduce consumption. UPS looked closely at the delivery routes taken by its vans. It discovered lots of time was lost, and fuel burnt, as the vans waited to make left turns. It replanned routes to minimise left turns and maximise right turns, where wait times are far shorter. The result: Less fuel burnt AND greater productivity – one driver can now make more deliveries, which can then justify higher wages!
Cheap fuel and power only perpetuates inefficiencies, further weakening Malaysia's competitiveness against leading nations. Businesses in those countries actively sought ways to minimise energy consumption when fuel prices were high. These energy-saving methods are now part of their competitive arsenal; and they have an extra source of profit margin now that energy prices have fallen.
So, for 2009, let's resolve to use our brains and work smarter. Not use our brains to scheme for subsidies.
Happy New Year and cheers to a wealthier, more prosperous, more productive Malaysia!
The treadmill starts again tomorrow. A new year with new budgets and new targets to meet amidst an intimidating backdrop of global and local economic headwinds. The newspaper headlines are still depressing, and it does look like it will be a tough year ahead.
With tough times, there will be increasing calls for the government to do more. And yes, I agree the government must help the most disadvantaged and poorest of society. But I am sure there'll also be appeals for help from able-bodied, capable, intelligent Malaysians, such is the subsidy mentality that permeates our society today.
Let's break out of this subsidy trap. Subsidies don't make us richer. They just make us weak and dependent. Our manufacturers claim they need cheap power and labour to be competitive. The reverse is true – it is cheap power and labour that have made us uncompetitive.
Power is so cheap in Malaysia that companies and individuals barely make any effort to consume it wisely. The best evidence – how many of us wear jackets/sweaters in the office because the air-cond is too cold? And take a look at the lights – both in your home and at the office. I'll bet there are more old-fashioned energy-hungry menthol bulbs and even worse, halogen lamps instead of energy-saving bulbs.
And consider petrol. While our businesses lobbied for lower prices, corporations such as courier company UPS in the US actively used their creativity and skills to reduce consumption. UPS looked closely at the delivery routes taken by its vans. It discovered lots of time was lost, and fuel burnt, as the vans waited to make left turns. It replanned routes to minimise left turns and maximise right turns, where wait times are far shorter. The result: Less fuel burnt AND greater productivity – one driver can now make more deliveries, which can then justify higher wages!
Cheap fuel and power only perpetuates inefficiencies, further weakening Malaysia's competitiveness against leading nations. Businesses in those countries actively sought ways to minimise energy consumption when fuel prices were high. These energy-saving methods are now part of their competitive arsenal; and they have an extra source of profit margin now that energy prices have fallen.
So, for 2009, let's resolve to use our brains and work smarter. Not use our brains to scheme for subsidies.
Happy New Year and cheers to a wealthier, more prosperous, more productive Malaysia!
Monday, December 22, 2008
Cheap power may benefit foreign workers and rich more than ordinary Malaysians
The Penang state government has been actively meeting businesses to see how it can help mitigate the economic downturn and minimise retrenchments. A very common refrain is to please cut electricity tariffs. Pakatan MPs in other states are also getting similar feedback from industrialists and entrepreneurs, “The cost of business is going up, we're facing challenging times, please cut power tariffs.”
The subsidy mentality permeates all levels of our society. Cheap power is a subsidy too. And like all subsidies, we should look closely to see if it truly benefits those most in need. Before we cut power tariffs, we should find out: 1) How many Malaysians the companies actually employ and 2) What will the companies do with the savings?
“How many Malaysians the companies actually employ” is particularly pertinent. When Indonesia liberalised fuel prices, including gas prices a few years ago, many manufacturers who depended on gas left Indonesia. It used to be a major player in the latex glove market – one where Malaysians such as Top Glove and Supermax complete. They quit, Malaysia ramped up market share.
But how many Malaysians did that really benefit? Top Glove, the world's biggest maker of latex gloves, was hit with a RM11.4m fine for having 1,769 illegal foreign workers on Aug 16, 2006. It has not reduced its dependence on foreign labour. The IHT reports that it employs 3,500 migrants - about half its work force - at 12 factories across the country.
Why are we subsidising this company and all these foreign labourers? Subsidies should go towards developing core Malaysian skills and improving productivity, not employing low-skilled low-valued add foreign labour.
Which brings me to the next question, What will the companies do with the savings? Any bets it'll tell workers you're lucky to stay employed; and the owners will happily pocket the additional profit? That doesn't help Malaysia – it just means another long-term subsidy which we cannot afford. No pure handouts please. Companies must earn the cheaper power by coming up with better ways of doing business.
Wednesday, December 17, 2008
Malaysians subsidising foreigners (2) – Astro spends RM1.2bn on Indons …
Because there's no competition in Malaysia, we have to pay whatever Astro demands and accept its over-priced packages offering us channels we don't want nor need, and we have to accept frequent service breakdowns in the rainy season. Astro then takes that money to offer cheap services to Indonesians. If Astro had not burnt that amount away in Indonesia, it could afford to give you a 50% discount on your subscription fee for one year!
But it doesn't look like it's going to happen since it has a cosy, secure monopoly granted by the BN government. If our companies are big enough to go overseas, they are big enough to face competition here in the local market. Local consumers will then benefit from lower prices and better services.
Monday, December 15, 2008
2009 GDP growth to slow tremendously, says EIU
Remember my piece on there barely being any GDP growth in Oct-Dec 2008? While the mainstream media and the BN crow about 5%+ growth for the WHOLE of 2008 and continue to live in la-la land with expectations of 3.5% growth next year, the Economist Intelligence Unit expects just 1.5%.
I've said it before: I take no pleasure in bearing bad news. But pretending things are fine will not help us. The crunch will be much worse when it hits if we are unprepared. The sooner we accept reality and the faster we take remedial measures the higher the chances for us to alleviate some of the pain.
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